Hims & Hers shares fall 29% after the lawsuit and DOJ referral

Shares of Hims & Hers Health dropped roughly 29.2% following a chain of events that began with the company's launch of a low-cost "Compounded Semaglutide Pill" on February 5, 2026 ^[1]. Days later, the company withdrew the product under pressure from the Food and Drug Administration ^[1][2]. Novo Nordisk, which makes the brand-name semaglutide products Ozempic, Wegovy and Rybelsus, then sued Hims & Hers over its compounded semaglutide offerings, and the matter escalated further when the Department of Health and Human Services referred the case to the Department of Justice ^[1].

The lawsuit and referral raised allegations of unsafe formulations and deceptive marketing tied to Hims & Hers' compounding practices ^[1]. According to CNBC, the underlying legal dispute centers on pharmaceutical compounding, which is legal when pharmacies tailor medications to individual patient needs, but which can cross a line when it moves into large-scale marketing of a drug ^[2]. Novo Nordisk has argued that because semaglutide is no longer in a supply shortage, compounded versions of the drug are no longer justified under the exceptions that allowed compounding during the shortage period ^[2].

One investment analysis noted that before this controversy, some analysts had projected Hims & Hers could reach about $4.1 billion in revenue and $331.6 million in earnings by 2028, with those forecasts leaning heavily on smooth regulatory scaling of its GLP-1 and lab-compounding businesses ^[1]. A separate narrative cited in the same analysis put more conservative estimates at $3.3 billion in revenue and $261.3 million in earnings by 2028, implying about 18.3% yearly revenue growth from $193.6 million in current earnings ^[1]. The gap between these estimates shows how much uncertainty the legal fight has introduced into projections for the company's weight-loss business ^[1].

Why it matters for patients

For people currently using or considering compounded semaglutide through telehealth platforms like Hims & Hers, this episode highlights the legal uncertainty surrounding compounded versions of GLP-1 drugs now that the branded drug's shortage has ended ^[2]. Patients who had accessed the withdrawn low-cost pill may need to look for alternative sources or return to FDA-approved options such as Wegovy, Ozempic, or Rybelsus, since the compounded pill is no longer available ^[1][2]. The dispute also underscores that compounding pharmacies are meant to serve individualized patient needs rather than function as a marketing channel for a broader product line, a distinction now under scrutiny in court and by regulators ^[2].

The financial pressure on Hims & Hers could also affect how the company prioritizes its various business lines going forward. One analysis suggested that other, less legally contested offerings, such as lab testing and cancer screening, might need to carry more of the company's near-term growth if the weight-loss compounding business remains constrained by regulatory and legal risk ^[1]. It is not yet known how the Novo Nordisk lawsuit or the Justice Department referral will ultimately be resolved, or what specific consequences either process could bring for Hims & Hers or for patients who used its compounded products ^[1][2].

What happens next

The Novo Nordisk lawsuit against Hims & Hers, filed earlier in February 2026, remains pending ^[1]. The Department of Justice referral from HHS had not been resolved as of the reporting in these sources, and no timeline for its outcome is given ^[1]. It is not yet known whether Hims & Hers will attempt to relaunch a compounded semaglutide product in a different form or whether the FDA scrutiny that prompted the withdrawal will lead to additional enforcement actions ^[1][2].